Research On Withdrawal Determinants Of The Multinational Corporations In China

As China's rapidly expanding investment scale and the world's new trend of economic integration, divestment in China becomes frequently day by day,which has a more prominent impact on China's economic and political aspect.A long time, the management of China's foreign investment has always stressed the importance of the introduction of capital ,national policies and regulations are also inclined to the external aspects of the investment.As for a relatively small study for the phenomenon of transnational corporations' withdraw in economic circles and the "withdrawal boom" faced by China , to strengthen the capital of multinational corporations in China research, fully understand the reasons for their divestments, to take corresponding countermeasures and measures for guiding the flow of foreign capital is essential.In view of this, this paper has been trying through integrated research, combined with the existing environmental change, First examine the status of China's divestment and business, industry, country, geographical features, and then explore a divestment incentive for multinational companies in China, thus contributing to policy-makers on the follow-up the flow of foreign capital in China, attention and guidance, to avoid the divestment of the the negative impact of China's economic rise.Uncertainties affecting international capital is one of the important factors in withdrawal. This article first introduces the basic theory of real options, and then on the basis of the existing theoretical studies of the multinational corporations under the conditions of price uncertainty, the risk of their options characteristics of divestment.In this paper, according to China's actual conditions, the product price as the only random variable, establish the price uncertainty real options model of the divestment decision under the conditions of divestment of multinational corporations in China, Solving the model numerically and analyzing the numerical results,by calculating the results and demonstrating a variety of graphical ,analyze what influence uncertainty factors of model exert on the capital threshold and enterprise value, and comprehensively analyze of the results of the variables and the relevance of cross-border enterprises in China how to impact divestment decisions, which has an important reference value.Finally, analysis of multinational capital, the status and dynamics, based on the divestment proposed in this paper the corresponding prevention, intervention measures and response measures after the divestment in order to minimize the divestment of China's economic, political and social negative impact.